UK GDP, manufacturing and industrial production figures were released this morning and all came out worse than expected which led to the Pound weakening against the Euro and Dollar. GDP data showed that the UK economy contracted by 20.4% for the month of April which was 5.8% worse than the previous month. There are rumours that minister Gove will formally rule out an extension to the Brexit transition period today which is also weighing heavily on the Pound.

Italian industrial production beat the markets expectations which initially gave the Euro a boost. This morning, Eurozone industrial production will be released at 10am which may cause some short-term volatility. German economic advisor Feld believes that even if there is a second wave of coronavirus cases, they will need to avoid another lockdown to damaging the economy even further.

US unemployment claims came out slightly better than expected at 1542K compared to 1550K that was expected, leading to the Dollar recovering some of its recent losses against the Pound and Euro. The market will also pay attention to consumer sentiment figures from the US that are due at 3pm today. US Treasury Secretary Mnuchin has said that they are keeping a close eye on whether or not China is honouring the phase one trade agreement.